Enabled revenue lift through predictive churn modelling for a leading equipment rental company

SUMMARY

The client’s sales force work on-ground to target and gather requirements from customers. The existing framework to identify at-risk customers was reactive in nature and purely based on customer revenue. This made their lead generation tough, and sometimes faulty.

APPROACH

We leveraged our knowledge in marketing analytics to tackle this challenge in a methodical manner:

We segmented customer accounts based on purchase behavior

Analyzed order gaps to deﬁne the at-risk periods for accounts and determine customer samples for the churn model

This was followed by identifying factors that led to customer accounts becoming inactive

These inputs were then used to create a predictive model and perform validation against various time frames as well as the existing model

KEY BENEFITS

The predictive and prescriptive nature of our solution help zero in on customers at-risk, before they become inactive or attrite

The solution accuracy ensures higher percentage of correct leads, and allows proactive targeting of customers who are likely to churn and retain

RESULTS

Our ﬁnal solution enabled the client to realize a reduction in churn rate by 17% and a gross incremental revenue of $150MM over a period of 12 months.